Ukraine. Export guarantee and minimum export prices for agricultural products will be introduced from December 1, 2024

UkrAgroConsult

In June of this year, the Verkhovna Rada adopted a law (No. 3706-IX of 09.05.2024) instructing the Cabinet of Ministers to temporarily introduce the VAT export credit regime for exports of certain types of goods (agricultural products) outside the customs territory of Ukraine. Despite the fact that Law No. 3706 came into force on July 1 this year, the export security regime has not yet been implemented.

On June 20, the Government adopted a procedure for approving minimum export prices to be applied after the introduction of the export guarantee regime.

Following the publication of the Cabinet of Ministers’ Resolution No. 1261 dated October 29, 2024 “On the Introduction of the Export Assurance Regime”, the effective date of the export assurance and minimum export prices for certain goods has been announced. The respective restrictions will be in effect from December 1, 2024 until the end of martial law.

According to Art. 19-2 of Law No. 959, this regime will apply to the following types of products classified under the following UKTZED codes

0409 00 00 00 – natural honey;
0802 31 00 00 – walnuts in shells;
0802 32 00 00 – walnuts without shells;
1001 – wheat and mixture of wheat and rye (meslin);
1002 – rye;
1003 – barley;
1004 – oats;
1005 – corn;
1201 – soybeans;
1205 – rape or colza seeds;
1206 00 – sunflower seeds;
1507 – soybean oil;
1512 – sunflower oil;
1514 – rapeseed oil (from rapeseed or colza) or mustard oil;
2306 – oil cake and other solid waste and residues obtained during the extraction of vegetable or microbial fats and oils, except for soybean and peanut oil waste.

The export security regime will provide for

• export of goods exclusively by registered value added tax payers;
• setting minimum export prices for goods subject to the export security regime. The difference between the invoice and customs value of goods should not be negative;
• electronic exchange of information between the National Bank, the State Tax Service and the State Customs Service to monitor and control exporters’ compliance with legal requirements;
• peculiarities of drawing up a tax invoice and its registration in the Unified Register of Tax Invoices.

According to the Resolution No. 944 of August 20, 2024 “On Approval of the Procedure for Approval of Minimum Export Prices for Certain Types of Goods”, the Ministry of Agrarian Policy will determine the minimum export prices for each type of goods, taking into account the terms of supply, and monthly by the 10th day of the month, and if such day falls on a weekend, the next business day after it.

The minimum export prices will be posted on the official website of the Ministry of Agrarian Policy no later than the next business day after the adoption of the order and will be applied from the day following the day of their publication on the official website of the Ministry of Agrarian Policy.

It is prohibited to export certain types of goods if the contractual (foreign trade) prices stipulated in the foreign economic agreement are lower than the minimum export prices approved by the Ministry of Agrarian Policy.

Tags: barley, wheat, rapeseed oil, restrictions, honey, Ukraine, oats, sunflower oil, corn, export, grain, soybean oil